Don calls for diversification of revenue as oil price continues to slide

A university lecturer, Dr Salamatu Isah, has called for the diversification of the nation’s economy to cushion the effects of the drop of oil price on the nation’s economy.
Salamatu, who is the Head of Economics Department, Ahmadu Bello University, Zaria, Kaduna State, said this during an interview with the News Agency of Nigeria (NAN) in Abuja.
He said that diversification remained one of the solutions to the potential economic crisis from the drop in the price of oil in the international market.
Isah said it was unfortunate that more than 100 per cent of the nation’s revenue came from oil sector.
She said it was high time the Federal Government developed the infrastructure in such areas of the economy as agriculture and solid minerals to enable the sectors contribute money to revenue earnings.
The lecturer said even at the initial 75 dollars per barrel of crude oil benchmark for the 2015 Federal Government budget, it would have been difficult for the budget to deliver on its promises.
“The economy, on its present state, will be affected based on the policy objective of providing infrastructure for the economic development.
“It is advisable for the Federal Government to start preparation on how to fill the gap to realise the mission of the 2015 budget.
“The fulfilment of the transformation agenda is in the realisation of enough revenue that will be allocated to the socio-economic services,” the lecturer told NAN.
The oil price had been on the decline oil in the international market dropping below the 75 dollars per barrel Federal Government budget benchmark to lower than 64 dollars on Tuesday.
The Minister of Finance and Coordinating Minister for the Economy, Dr Ngozi Okonjo-Iweala, had announced a raft of measures to cushion the effect of the slide on the economy.
Some of the measures announced by the minister included raising tax on luxury goods and cuts in kerosene subsidy and downward review of overseas training for Federal Government officials.
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